Author Question: If an increase in marginal tax rates leads to an increase in tax revenues, then a. the Laffer ... (Read 136 times)

Awilson837 · **on:** Jun 30, 2018

If an increase in marginal tax rates leads to an increase in tax revenues, then

a. the Laffer curve model of tax revenue is refuted.
b. supply-side economics is refuted.
c. the economy could be below the tax revenue maximizing tax rate.
d. we could be on the upward sloping portion of the Laffer curve.

Question 2

When the English pound appreciated against a colonial currency, this signaled

(a) that colonists needed more colonial currency to buy an English pound.
(b) that colonists needed less colonial currency to buy an English pound.
(c) that colonists needed more colonial and Spanish currency to buy an
English pound.
(d) nothing of economic importance.